Rates of interest rise making companies extra cautious about hiring, report says
D
eclining financial exercise because of greater rates of interest has led to a fall in enterprise output and hiring intentions, new analysis suggests.
Business advisory agency BDO stated the results of tighter financial coverage from the Bank of England have been being mirrored within the labour market, with a fall in demand for staff.
At the identical time, greater charges have been stated to have pushed a slowdown in productiveness progress.
Kaley Crossthwaite, associate at BDO stated: “Businesses are reacting to the higher interest rate environment with conservative decisions about hiring.
“Caution is the watchword.
“Predictions for a recession paint a weaker picture for the economy, and we can expect a slump in output, optimism and employment in the final months of 2023 as a result of rising unemployment and higher rates for businesses.”